Question

1. (6 pts) Given the following data about XYZ Mutual Fund on Oct. 1:

Assets:                                                                                 Liabilities:

Cash = $20,000                                                                   Accrued fees and expenses = $500
1,000 Shares of Stock A: Closing Price = $50
2,000 Shares of Stock B: Closing Price = $40

1,000 Shares of Stock C: Closing Price =$100                         Shares Outstanding = 6,000

Total Value of the Assets = $250,000

1. Compute the Net Asset Value of XYZ mutual Fund on Oct 1:

NAV = __________________

2. If the stock price of A closes at $53 and the stock price of B closes at $46, and the Stock price of C closes at $98 on Oct. 2, what will be the new NAV of XYZ mutual fund on Oct 2?

NAV = _________________

Answer 1

	Cash	20,000.00
	1000 Sharesof A @$50	50,000.00
	2000 Sharesof B @$40	80,000.00
	1000 Sharesof C @ $100	100,000.00
	Total value of asset	250,000.00
Less:	Liabilities
	Accrued fees and expenses	500.00
	NAV as on OCT 1	249,500.00

Calculation of NAV as on Oct 2

Cash	20,000.00
1000 Sharesof A @$53	53,000.00
2000 Sharesof B @$46	92,000.00
1000 Sharesof C @ $98	98,000.00
Total value of asset	263,000.00
Liabilities
Accrued fees and expenses	500.00
NAV as on OCT 2	262,500.00